PM raises doubts over creation of flood solidarity fund based on cut in tax breaks

Prime Minister Nečas has raised doubts over the introduction of a solidarity fund to deal with the effects of flooding in the future. Following floods in north Bohemia two weeks ago, the minister of finance, Miroslav Kalousek, said all working Czechs would contribute to the fund in the form of a CZK 100-a-month cut in income tax breaks, a move some critics slammed as nothing less than a new tax. On Czech Television on Sunday the prime minister said he was now considering whether to go ahead with the plan, adding that the money to deal with flooding ought to be found from other sources.

Author: Ian Willoughby